When you first decide to invest in gold, what is the most attractive way to make your acquire? Let's looks at the options - at least a few to begin with. There are two main ways to buy physical gold - either by gold bullion or coins, also known as numismatics.
First of all, when you buy gold bullion you are getting a direct connection to the value of the metal - nothing else. If the price of gold goes up 2% then whatever physical gold you are holding goes up 2% as well in this form. However, gold coins are quite different, since their value is based more on their relative worth to a collector rather than the gold itself. So if the price of gold goes up 2%, your gold coins may not go up even a penny! On the other hand, if they suddenly are more in demand due to some professed or real shortage, the coins may jump in value even as gold stays the same in price. Other factors include scarcity, condition, and reputation.